Crypto Pegged to Gold: A Deep Dive into Regulation, Custody & Redemption

In an era where cryptocurrencies are known for volatility, crypto pegged to gold offers investors the best of two worlds: the innovation and speed of blockchain technology combined with the stability of gold. While the concept sounds straightforward — a digital token backed by physical gold — the real story involves layers of regulation, custody practices, and redemption mechanisms that every investor should understand before jumping in. 1. What Is Crypto Pegged to Gold? A gold pegged to crypto token is a digital asset whose value is directly linked to a fixed quantity of physical gold. For example, one token might equal one troy ounce of gold stored in a secure vault. Unlike traditional cryptocurrencies that can swing wildly in price, these tokens aim to maintain a stable value by holding real gold reserves. Popular examples include: Tether Gold (XAUT) – 1 token = 1 troy ounce of gold PAX Gold (PAXG) – Redeemable for LBMA-accredited gold bars Perth Mint Gold Token (PMGT) – ...